Investec fund buys bargain Canberra property


Investec fund buys bargain Canberra property

Published Date: 2019-03-14 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Investec fund buys bargain Canberra property

The property fund is buying the building housing Australia's Attorney General as it invests in well located, high-quality assets.

Investec Australia Property Fund has bought an office building in the Australian capital at a discount to its value. It's paying A$29.75 million for the block in Symonston in Australia Capital Territory, an 11% discount to its replacement cost. The purchase price represents an initial passing yield of 6.93% and 6.55% after all transaction costs. It's accretive to the fund.

It's funding the deal through its existing syndicated debt facility with Westpac Banking Corporation and Australia and New Zealand Banking Group at a margin of 110 basis points for a 12-month term.

The fund says the acquisition is consistent with its strategy of investing in well located, high-quality assets. The purpose-built property is leased to the Attorney General's Department.

It made news last year after Westtech Holding put it up for sale as it was revealed that it would be used to keep the federal government running if there was a catastrophic attack on Australia's Parliament House. The Canberra Times reported that 24 Wormald Street was central to "Plan Mercator", aimed at maintaining continuity of government in an attack.

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